http://www.*.com.au/companies/news/57025/shaw-ri...

http://www.*.com.au/companies/news/...ozondu-manganese-with-funding-deal-57025.html

Shaw River Manganese moves ahead at Otjozondu Manganese with funding deal Tuesday, August 19, 2014 Shaw River Manganese moves ahead at Otjozondu Manganese with funding deal Shaw River Manganese (ASX:SRR) has gained valuable new convertible loan debt funding from Bryve Resources Pty Ltd to enable an in fill drilling program to start at the Otjozondu Manganese Project in Namibia. Ringing in further changes, Peter Cunningham is to be appointed as Shaw River managing director. Cunningham is currently President and CEO of TSX listed mining company, Cadan Resources Corporation (CVE:CXD), and Managing Director of unlisted Auvex Manganese Limited. Bryve will acquire 9.69% of Shaw River equity held by major shareholder Atlas Iron (ASX:AGO) with an option to acquire the remaining 43.76% of Shaw River shares currently held by Atlas at a price of A$0.0035 per share. Current price is $0.013. Atlas will also grant Bryve a six month option to acquire Atlas’s remaining 43.76% shareholding in Shaw River at an exercise price of A$0.0035 per share. This will potentially remove an overhang for Shaw River with the Atlas shareholding. The debt funding is under two separate, secured facilities in two tranches. The first, an amount up to A$2 million convertible loan facility and the second an amount up to A$6 million contingent working capital facility. The new funding is designed to enable Shaw River to rapidly progress development of the Otjozondu Project and bring it into production as quickly as possible. Up to 40% of the free cash flow generated from the Otjozondu Project will be used to repay Shaw River’s debt. the A$4.95 million owed to Atlas under the existing loan facility is to be repaid as a priority and ahead of any repayments to the Bryve Facility. In all, these are very positive developments for Shaw River, setting it firmly on a funded development path at Otjozondu. Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.